Allscripts: Surges after agreeing to sell CarePort Health unit for $1.35 bln

Veradigm

14/10/2020 12:06

** Shares of healthcare IT co  MDRX.O  surge 38% to $11.5
premarket - set for best day ever
    ** Stock among top pct gainers across U.S. exchanges and set
to hit their highest in almost a year
    ** Late on Tuesday, co said it will sell its CarePort Health
business to privately-held community care tech co Wellsky Corp
for $1.35 bln  urn:newsml:reuters.com:*:nBw76Smsta
    ** Co expects deal to close before year-end
    ** Co to use proceeds from sale to invest in its solutions,
further deleverage its balance sheet and support share
repurchases
    ** Cowen believes rationale for sale was to monetize a
valuable non-core asset and allow MDRX to focus on its core
business
    ** Adds deploying proceeds from sale towards delevering will
further strengthen its liquidity 
    ** Cantor Fitzgerald says CarePort sale is a winner and was
surprised to see it sold at $1.35 bln; raises PT to $13 from $9
    ** Up to Tuesday's close, stock had fallen ~15% YTD

 (Reporting by Dania Nadeem in Bengaluru)
 ((Dania.Nadeem@thomsonreuters.com;))